Back to top

Image: Bigstock

AZZ (AZZ) Stock Jumps 11.7%: Will It Continue to Soar?

Read MoreHide Full Article

AZZ (AZZ - Free Report) shares rallied 11.7% in the last trading session to close at $57.57. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 4% loss over the past four weeks.

AZZ Inc.’s first quarter fiscal 2022 earnings per share and total revenues were better than expected.  The company raised its fiscal 2022 earnings per share guidance to the range of $2.65-$3.05 from the prior band of $2.45-$2.95. The company also revised its fiscal 2022 revenue guidance to a range of $855 million to $935 million from the prior range of $835 million to $935 million. The upwards revision takes into consideration improvement in the end market conditions in which the company operates.

Bookings for the three-month period of fiscal 2022 increased 31.4% year over year to $229.8 million. The company continues to expand operation through organic and inorganic initiatives. Share buyback worth $6.3 million during the quarter will enhance shareholders value.

This electrical equipment maker is expected to post quarterly earnings of $0.57 per share in next quarter, which represents a year-over-year change of +16.3%. Revenues are expected to be $210.4 million, up 3.5% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For AZZ, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on AZZ going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


AZZ Inc. (AZZ) - free report >>

Published in